Bank lobbyists are not leaving it to lawmakers to draft
legislation that softens financial regulations. Instead, the
lobbyists are helping to write it themselves.

One bill that sailed through the House Financial Services
Committee this month — over the objections of the Treasury
Department — was essentially Citigroup’s, according to
e-mails reviewed by The New York Times. The bill would
exempt broad swathes of trades from new regulation.

In a sign of Wall Street’s resurgent influence in Washington,
Citigroup’s recommendations were reflected in more than 70
lines of the House committee’s 85-line bill. Two crucial
paragraphs, prepared by Citigroup in conjunction with other
Wall Street banks, were copied nearly word for word.
(Lawmakers changed two words to make them plural.)"
As we previously reported, on May 7th, nine deregulatory bills sailed through the House Financial Services Committee. We wrote about one of them, HR 992, and this particular bill garnered only SIX "nay" votes, out of SIXTY-ONE total representatives on the Committee.

This egregious bill, which is named "Swaps Regulatory Improvement Act", but it should be called, "If Banks Get Bailed Out, We'll Get Sold Out. Again," was written in large part by Citigroup. As the NTYimes reports:

"Citigroup and other major banks used a similar approach on
another derivatives bill. Under Dodd-Frank, banks must
push some derivatives trading into separate units that are
not backed by the government’s insurance fund. The goal was
to isolate this risky trading.

The provision exempted many derivatives from the
requirement, but some Republicans proposed striking the
so-called push out provision altogether. After objections
were raised about the Republican plan, Citigroup lobbyists
sent around the bank’s own compromise proposal that
simply exempted a wider array of derivatives. That
recommendation, put forth in late 2011, was largely part of
the bill approved by the House committee on May 7 and is
now pending before both the Senate and the House."